Bengal's sponge iron industry in crisis

Kolkata, Nov 07 (UNI) Increase in raw material prices has led to crisis in the sponge iron industry in West Bengal.

The operational loss of the sponge iron industry has reached Rs 1200-1400 per ton owing to the higher input costs, West Bengal Sponge Iron Manufacturers Association president Gouri Shankar Jain said.

The state produces two million ton of sponge iron from 44 units which in turn produces 1.8 million ton of steel, Mr Jain said.

The units employ around 12,000 directly and over 30,000 people indirectly.

The total investment in the sponge iron industry is over Rs 2100 crore and another 1600 crore are in the pipeline in the next two years.

The closure of the units would have impact in the economy of the state in the districts of Burdwan, Bankura and Purulia, Mr Jain said.

All the steel melting furnaces would have to close down and have a trickle down impact on the iron and steel sector, he said.

He urged on the government to initiate policies to ensure turnaround of the sponge iron industry similar to what has been done in Chhatisgarh and Orissa.

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